Compensation Fund (COIDA)

The Compensation Fund is established by section 15 of the Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA), administered by the Compensation Commissioner in the Department of Employment and Labour. It is the central repository for compensation claims by employees who sustain workplace injuries or contract occupational diseases, providing a "no-fault" scheme that replaces the common-law right to sue the employer in delict for workplace harm. Section 35 of COIDA expressly extinguishes the employee\'s common-law claim against the employer, so the Fund becomes the exclusive remedy for an insured injury.

Every employer (other than those in mining, covered by the Rand Mutual Assurance, or excluded categories) must register with the Commissioner under section 80 and submit an annual return of earnings (ROE) under section 82. The Commissioner assesses a tariff based on the employer\'s industry risk classification and annual payroll; payment of the assessment funds both the Fund itself and the administrative infrastructure. An employer who pays the assessment and is "in good standing" receives a Letter of Good Standing, which is the standard procurement evidence that the employer is COIDA-compliant and the workforce is insured.

Benefits payable from the Fund include medical aid for work-related injury or disease, temporary or permanent disability compensation calculated on earnings and degree of disablement, and dependant pensions on fatal accidents. Claims must be reported under section 39 within seven days of the injury becoming known. Non-compliance — whether by failing to register, to pay assessments or to report — exposes the employer to civil liability for the full compensation under section 87, effectively reinstating the common-law delictual claim on top of statutory penalties. Practical compliance requires registration, annual ROE submission, prompt incident reporting and maintenance of the Letter of Good Standing for tender purposes.